Asset Management Plan

Transcription

1 Asset Management Plan

2 Contents Executive Summary... 4 Asset Management Plan... 6 Introduction... 6 Financial Overview Conclusion Attached Appendices Asset Management Strategy Introduction Purpose Desired Levels of Service Life Cycle Activities Risks Rating and Scoring Methodology State of Infrastructure Strategy Building the State of Infrastructure Report User-Rate Supported Infrastructure Water System User-Rate Supported Infrastructure Wastewater System Property-Tax Supported (Base Municipal Levy) Infrastructure Roads - Paved Property-Tax Supported (Base Municipal Levy) Infrastructure Roadside Roadside (Continued) Property-Tax Supported (Base Municipal Levy) Infrastructure Bridges and Culverts Property-Tax Supported (Urban Levy) Infrastructure Storm Sewer System Storm Sewer System (Continued) Financial Strategy General Overview of Financial Strategy Requirements Property-Tax Supported Infrastructure a. Funding Level b. Funding Level User-Rate Supported Infrastructure a. Funding Level b. Funding Level

3 Conclusion Next Steps Recommendations to Council

4 Executive Summary Existing infrastructure in the Town of Essex is aging while demand grows for better infrastructure. This demand is in response to higher standards of safety, health, environmental protection, regulations and to some degree growth. The solution to this issue is to examine the way the Town plans, designs and manages infrastructure to meet changing demands. One proven way of doing this is to apply Long Range Infrastructure Planning (LRIP). LRIP has historically been utilized to identify the replacement needs and cycle of linear assets. It has evolved into what is now more commonly known as Asset Management. Staff have reviewed long range infrastructure strategies, current technical and financial practices and consolidated them into an Asset Management Plan. To ensure that the information presented is as accurate as possible, the information contained in this document is for year ending 2012, which are the Town s most recent audited financial statements. This Asset Management Plan was developed using the requirements outlined within the provincial Building Together Guide for Municipal Asset Management Plans. The Asset Management Plan as presented in this report is a systematic process that provides direction in determining the allocation of funds for the maintaining, upgrading and operating of the Town s physical assets in a cost-effective manner, in order to meet current and ongoing asset needs. This plan accounts for the Town s linear infrastructure assets including; roads, roadside, bridges and culverts, storm sewer systems, water systems, and wastewater systems. By implementing an Asset Management Plan, the Town of Essex can meet infrastructure demands in a fiscally responsible and environmentally sustainable framework while preserving the Town s high quality of life. 4

5 The asset management strategies attached have been compiled with the intent of being revised from time to time according to changes in best management practices, advances in technology, financial constraints, or changes to the condition assessments. 5

6 Asset Management Plan Introduction An Asset Management Plan is a plan for the management of one or more assets within a municipality that combines various management techniques, including the technical and financial management of assets over their lifecycle. The objective is to attain a specified level of service in the most cost-effective manner. Integrated Asset Management Plans build upon this by linking all infrastructure assets that share a common location within an identified Infrastructure corridor. Good asset management can maximize the benefits provided by infrastructure as it deals with the long-term perspective. It also gives the Town the opportunity to achieve cost savings by identifying decline early on so action can be taken to rehabilitate or renew the asset, or related assets found within the infrastructure corridor Categories of assets contained within the infrastructure corridor generally include all asset categories as identified in this plan (roads, roadside, bridges and culverts, storm sewer systems, water systems, and wastewater systems). Each category of assets can have a different useful life, and in-turn lifecycle which results in the need for the technical and financial experts to consult and determine based upon the condition of each asset, the need for replacement or rehabilitation. Asset replacement strategies should be developed to ensure that assets with shorter useful lives are maintained in an effective and efficient manner to allow the Town to match their replacement to the useful life of the longest asset in the utility corridor. Assets with the longest useful life generally included water and wastewater. As an example, if a road that requires resurfacing such as Fairview Avenue has surpassed its useful life of 25 years and cannot be maintained to an acceptable condition, this replacement would drive the need to review the condition of the water and wastewater system. If the water and wastewater assets in the infrastructure corridor are at the end or very close to the end of their 75 year useful life, full replacement of road, roadside, water and wastewater assets would be recommended. If the water and wastewater assets have a useful life of 25 to 6

7 30 years remaining that is comparable to a fully reconstructed roads useful life of 25 years then the road would be recommended for replacement alone. If the useful life remaining for the water and wastewater assets is 10 years and the useful life of a new road is 25 years, then temporary repairs of the road to extend it an additional 10 years to meet the useful life remaining on the water and wastewater assets would be recommended if feasible, or full reconstruction of all assets in the infrastructure corridor need to carefully weighed, and considered. Through the linking of assets within identified infrastructure corridors, the Town of Essex can potentially realize savings through the planning and coordination of maintenance and replacement activities. The integrated asset management plan will incorporate any existing preventative maintenance and risk management programs currently in place. The preventative maintenance component will ensure that the day-to-day wear and tear of an asset is dealt with to ensure that the asset can reach its expected useful life. Condition assessment and risk management components ensure that Town Administration effectively manage the risk of failure through due diligence. Good asset management results in informed and strategically sound decisions that optimize investments, better manage risk and take into account the potential impact of other factors such as climate change. Through the implementation of an integrated asset management plan, the Town can formalize the process of asset management planning. Through formalization of asset management planning the Town can ensure it is making the best possible decisions regarding the construction, operations, maintenance, renewal, replacement, and disposal of all infrastructure assets. This will allow the Town to maximize the benefits, manage risks, and provide satisfactory levels of service to the public in a sustainable manner. In addition, an asset management plan requires a thorough understanding of the characteristics and condition of infrastructure assets, as well as the service levels expected from them. It also involves setting strategic priorities to optimize decision-making about when and how to proceed with investments. Finally, it requires the development of a financial plan, which is the most critical step in putting the plan into action. 7

8 Currently the Town utilizes asset inventory and capital planning software that identifies when assets are to be replaced each year, based on end of useful life, and condition assessment. For the purpose of this report, condition ratings based on useful life have been utilized, however moving forward it is recommended that condition assessments be performed. To ensure the accuracy and completeness of the asset inventory moving forward, Town staff have spent considerable time verifying the data contained in the. Tools such as recent studies, in-house measurements and staff knowledge were leveraged as part of the verification process. It is the intent of the Town that this Asset Management Plan will be posted and updated, as required, so that residents will have the opportunity to review the state of the Town s infrastructure. It is recommended that this plan be adopted and implemented as of December 2013, as identified in this report under Appendix D. Key Benefits Specific benefits associated with an Asset Management Plan include: Leads to more effective communication with rate payers, elected officials, financial rating organizations and regulatory agencies; Facilitates the establishment and subsequent implementation of policy objectives and the related measurement of performance; Avoids problems and potential crises through the proactive utilization of resources; Increases openness, transparency and accountability; Can reduce lifecycle costs; Allows for better decision-making regarding resource allocation; Allows for more effective financial planning; Leads to more efficient data management; Provides consistent measurable levels of service to the public; Raises awareness of state of Town s infrastructure and how it will be replaced; and Facilitates the grant application process by knowing what projects are priority; and 8

9 Can allow the Town to better manage risk. Key Principles Key principles of an Asset Management Plan include: A strategic and proactive approach that places a premium on data, information, collaboration and interdisciplinary management; A comprehensive long-term view of infrastructure performance and cost; An explicit, visible and transparent approach that requires effective communication among all stakeholders; A business case involving investment choices that are policy driven with trade-offs among competing priorities; and Alignment with two of the seven council priorities namely, enhanced transparency and increased energy efficiency through upgraded infrastructure. Essential Components In order for an asset management plan to fulfill the rationale of asset management, the following essential components must be contained in the overall plan: 1. Asset Costing: All municipal infrastructure assets have a monetary value. Administration has determined the actual capital value for the majority of assets based on actual asset costs. This was done as part of the implementation of Public Sector Accounting Board Section 3150 Tangible Capital Assets. For older assets where actual costs were not available an estimate based on actual cost of a replacement asset was done and indexed back to the asset s acquisition date, to provide approximate historical costs for those assets. 2. Lifecycle Management: All assets have a limited life expectancy. To some degree the rate of decline can be estimated. A decision made at any point in time in the lifecycle of an asset has an effect on the remaining life, and may have operational implications and related costs. 9

10 3. Sustainability: In terms of asset management, sustainable development has been defined in the National Guide to Sustainable Municipal Infrastructure as, meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. The Asset Management Plan needs to identify a financial plan over the long term to ensure that sufficient monies are available. These monies provide the resources required to operate, rehabilitate, and ultimately replace the asset at the optimal time with the intention of achieving the lowest lifecycle. The plan helps ensure that current users pay a fair share for the service they receive so that future users do not have to pay a higher cost for the same level of service. 4. Risk Assessment: Risk should be managed in any decision-making process. The owner of the assets should analyze and document acceptable risk tolerance. In the Town of Essex s case, the probability of failure is taken into account while the condition of the asset is being analyzed. Risk factors can include financial, environmental, regulatory/legal, and public health and safety. It must be noted that although certain assets may have a higher risk rating than others, it does not mean that those assets will be the priority in every case. In addition assets with the lowest overall condition rating do not necessarily have the highest risk. 5. Performance Measurement: To optimize an Asset Management Plan, performance of the assets and rehabilitation strategies should be monitored regularly, and adjustments made at the appropriate stage in the asset lifecycle to achieve an acceptable balance between cost and performance (level of service). Benchmarks (for some of the assets) will be compiled into a comprehensive database and used to determine the performance of the asset. For example, levels of service for a water system could include how many breaks per 100 kilometre of watermain per year are acceptable. 10

11 Financial Overview It is important to recognize that, based upon the plan as presented, the amount of funds available through the Capital Budget and Capital Forecasting process may not be sufficient to sustain the current level of service. Administration will continue to collectively work together to accommodate the financial and technical requirements of this plan, including taking advantage of any grant funding programs that may be available today or in the future. Appendix C of this document outlines the Financial Strategy for the replacement of the Town s assets, and options to reduce the funding gap. Conclusion The Asset Management Plan as presented in this report is a systematic process that allows for the maintenance, upgrading, and the operating of the Town s physical assets in a costeffective manner. By implementing an Asset Management Plan, the Town of Essex can meet the new demands within a fiscally responsible and environmentally sustainable framework while preserving the current high quality of life. Attached Appendices The following appendices are attached to this plan: 1. Appendix A 2012 Asset Management Strategy 2. Appendix B 2012 State of Infrastructure Report 3. Appendix C 2012 Financial Strategy of Assets 4. Appendix D Recommendations to Council 11

12 Asset Management Strategy Appendix A 12

13 Asset Management Strategy Introduction An Asset Management Strategy is the set of planned actions that will enable an asset(s) to provide the desired levels of service in a sustainable way, while managing risk, at the lowest possible life cycle cost. The Town of Essex provides complex networks of infrastructure assets consisting of; roads, roadside, bridges and culverts, storm water systems, water systems, and wastewater systems. In order for the Town to fully fulfill its obligation of service delivery to the community, the Town must ensure that the assets supporting these services are managed in a way that balances service level, risk and affordability. The majority of these assets are long-term and have useful lives measured in decades. They require significant ongoing investment in operating, maintenance and renewal activities to ensure they are safe, structurally sound and fit-for-purpose to support the delivery of services. Purpose Effective asset management requires support and guidance from top management. The strategy outlined in this document sets out the long-term systematic approach to the management of the Town s assets. This document is presented at a point in time, and is continuously evolving as its intent is to respond to internal and external changes and challenges faced by the Town. Essentially, it is a set of planned actions that will enable the assets to provide the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost. 13

14 Desired Levels of Service Condition Assessments The success of any Asset Management Plan hinges on having comprehensive and reliable information on its assets current condition. For the purpose of this report condition ratings based on useful life have been utilized, however for future versions of this report it is recommended that condition assessments be performed. Decisions regarding future replacement, rehabilitation or upgrade of assets are based on condition assessments making those assessments an invaluable resource for future infrastructure planning as it can help to prevent future failures, reduce Town s liability, lower costs relating to failure and maintenance, and can extend the useful life on an asset. Assessments are annual, recurring events. Pavement Inspections Ontario Regulation 239/02 Minimum Maintenance Standards for Municipal Highways outlines the minimum maintenance standards for municipal roads. Internal inspections of road surfaces capture information regarding the following (this is not an inclusive list): Potholes Shoulder drop-offs Cracks Excessive crowning Wheel track rutting The process of inspecting paved municipal roads entails having Town employees perform surveys as prescribed by regulation using standardized inspection forms. For the year of implementation of the Asset Management Plan, the Town has used an age based condition rating, whereby the condition rating associated with each asset is calculated based on the asset age and remaining useful life. 14

15 Unpaved Roads Inspections Ontario Regulation 239/02 Minimum Maintenance Standards for Municipal Highways outlines the minimum maintenance standards for municipal roads. Internal inspections of road surfaces captures information regarding the following (this is not an inclusive list): Potholes Shoulder drop-offs Cracks Excessive crowning Wheel track rutting The process of inspecting municipal unpaved roads entails having Town employees perform surveys as prescribed by regulation using standardized inspection forms. For the year of implementation of the Asset Management Plan, the Town has used an age based condition rating, whereby the condition rating associated with each asset is calculated based on the asset age and remaining useful life. Bridge and Culvert Inspections Ontario Regulation 104/97 Standards for Bridges, under the Public Transportation and Highway Improvement Act requires all Ontario municipalities to inspect all structures that have a span of three metres or more. The regulation requires that a detailed inspection led or supervised by a trained, professional engineer be done every two years. In addition, a general maintenance inspection is conducted at least twice per year. During inspections, inspectors carefully assess each part of the bridge and identify any maintenance work that needs to be completed. Each component is examined to ensure the structure is safe for travel. Inspectors examine the following components; barrier and railing, deck, piers, soffit, beams, abutment, wing wall, and sidewalk. 15

16 Experienced, professional engineers and inspectors must follow the guidelines as laid out in Ontario s Structure Inspection Manual. This manual provides inspectors with specific inspection procedures that must be followed during all bridge inspections. As part of the regular inspections performed by the engineer, capital and maintenance recommendations are provided. There are four types of inspections performed over the lifetime of the structure, and include: Detailed visual inspections occurs every two years where by the inspector checks the general condition of the structure, assesses each component close-up looking for any problems with its concrete or steel materials, identifies what repairs are needed for each component and if additional testing is needed, reports any potential safety issues to supervising engineers and maintenance crews. These repairs are fixed immediately. General maintenance inspections takes place twice a year (spring and fall), and looks at the general condition of the structure and identifies any safety issues. Repairs are done immediately. Road patrol inspections take place on a regular basis. These inspections are conducted by a Town employee who ensures the structure s roadway is safe and checks for potential safety issues and will request a detailed inspection if any safety issues are identified. Emergency inspections take place after a major vehicle collision involving one or more bridge components, a flood, an earthquake, etc. These inspections are performed by a trained, professional engineer. Engineers use technology when testing certain bridge components where needed. Examples of this technology include: External technology testing using ultrasonic magnetic particle tests. This test helps the inspector to determine if there is a crack that may be undetectable to the human eye. 16

17 Steel fatigue inspection are used for older steel structures using external technology testing such as ultrasonic testing to check for cracks in places where steel parts are connected. Internal technology testing removes small samples of concrete or steel and tests them in a lab to check the strength. Load capacity tests uses a special truck loaded with concrete blocks that drives across the bridge while instruments attached to the bridge measure and record its movement. This measures how much weight the structure can safely carry at one time. Storm Sewer System Inspections Emergency repairs of a main can cost up to 50% more than the repair under normal circumstances. The need for emergency repairs of buried mains can be significantly reduced if critical sections could be identified and repaired before a failure occurs. Maintenance and inspections of these mains can prolong the life of this asset. There are various methods for assessing the condition of storm sewer systems. The Town utilizes these methods as needed. They are as follows: Smoke testing. A non-toxic smoke bomb or liquid smoke is paced in a manhole along with a blower. The blower pushes the smoke through the system. Cracks or improper connections are exposed when the smoke is seen filtering out of the main. Dye testing. This test will trace the flow of effluent through the system. This method can be used to check if storm water drains are connected to wastewater systems. A non-toxic powder dye is added to drains and mixes with fluid carried by the main, giving it a highly visible colour that can easily be traced. Video inspection. This is the most common method where a camera is placed into a mains and the picture is relayed to an operator above ground who interprets the images and records the location and nature of the deficiencies observed. 17

18 Zoom camera technology. Truck-mounted camera equipment with long-range zoom lens and powerful spotlights are used to conduct visual inspections. The camera is lowered into the manhole from the back of a truck to the elevation of the first main and remotely aligned with the main. A continuous image of the main s interior surface is displayed on a monitor located in the truck while being recorded for future analysis. Information regarding the condition of the mains can be gathered by collecting data such as age, number of failures, blockages, backups, soil condition, visual inspection of manhole and catch basins, and material type. This information helps to evaluate the condition of the mains and provides valuable information that can be used when assessing mains for replacement. It is recommended the existing storm sewer condition practices be formalized into a storm sewer condition assessment program. These practices will provide an overall general condition rating for each main assessed. Wastewater System Inspections Emergency repairs of a main can cost up to 50% more than the repair under normal circumstances. The need for emergency repairs of buried mains can be significantly reduced if critical sections could be identified and repaired before a failure occurs. Maintenance and inspections of these mains can prolong the life of this asset. There are various methods for assessing the condition of wastewater systems. The Town utilizes these methods as needed. They are as follows: Smoke testing. A non-toxic smoke bomb or liquid smoke is paced in a manhole along with a blower. The blower pushes the smoke through the system. Cracks or improper connections are exposed when the smoke is seen filtering out of the main. Dye testing. This test will trace the flow of effluent through the system. This method can be used to check if storm water drains are connected to wastewater mains. A non- 18

19 toxic powder dye is added to a storm drain and mixes with fluid carried by the main, giving it a highly visible colour that can easily be traced. Video inspection. This is the most common method where a camera is placed into a mains and the picture is relayed to an operator above ground who interprets the images and records the location and nature of the deficiencies observed. Zoom camera technology. Truck-mounted camera equipment with long-range zoom lens and powerful spotlights are used to conduct visual inspections. The camera is lowered into the manhole from the back of a truck to the elevation of the first main and remotely aligned with the main. A continuous image of the main s interior surface is displayed on a monitor located in the truck while being recorded for future analysis. Information regarding the condition of the mains can be gathered by collecting data such as age, number of failures, blockages, backups, soil condition, visual inspection of manholes, material type, and through inflow and infiltration studies. This information helps to evaluate the condition of the mains and provides valuable information that can be used when assessing mains for replacement. It is recommended the existing wastewater system condition practices be formalized into a wastewater system condition assessment program. These practices will provide an overall general condition rating for each main assessed. Water System Inspections Watermain inspections pose a challenge as there is a constant high pressure flow within the network. Information regarding the condition of the mains can be gathered by collecting data such as age, number of breaks, soil condition, hydrant flow inspections and material type. This information helps to evaluate the condition of the mains and provides valuable information that can be used when assessing mains for replacement. 19

20 It is recommended that the existing water condition practices be formalized into a water condition assessment program. These practices will provide an overall general condition rating for each main assessed. Life Cycle Activities Life cycle activities are specific activities applied at the appropriate time in an asset s life to provide the optimal additional life at the lowest cost. The activities include: Maintenance. Regularly scheduled inspection and maintenance, or more significant repair and activities associated with unexpected events. Renewal/rehabilitation. Significant repairs designed to extend the life of the asset. Replacement. Activities that are expected to occur once an asset has reached the end of its useful life and renewal/rehabilitation is no longer an option. Disposal. Activities associated with disposing of an asset once it has reached the end of its useful life, or is no longer needed. Expansion. Planned activities required to extend services to previously un-serviced areas or expand services to meet growth demands and/or to upgrades services to accommodate changes in weather patterns. The following outlines when certain work activities should be applied as it relates to the condition of the asset. Paved Roads A - Excellent Condition (Maintenance) Fit for the future. Well maintained, good condition, new or recently rehabilitated Condition range o Regular maintenance required B Good Condition (Preventative Maintenance) 20

21 Adequate for now. Acceptable, generally approaching mid stage of expected service life Condition range o Crack sealing o Emulsions o Surface treatment C Fair Condition (Rehabilitation) Requires attention. Signs of deterioration, some elements exhibit deficiencies Condition range o Resurface Mill and pave; asphalt overlay o Extensive surface treatment o Pulverize and resurface D Poor Condition (Rehabilitation) At risk of affecting service. Approaching end of service life, condition below standard, large portion of system exhibits significant deterioration Condition range o Rehabilitate F Critical Condition (Reconstruction) Unfit for sustained service. Beyond expected service life; widespread signs of advanced deterioration, some assets may be unusable Condition range 19-0 o Reconstruction Storm Sewer Systems A - Excellent Condition (Maintenance) Fit for the future. Well maintained, good condition, new or recently rehabilitated Condition range

22 o Regular maintenance required B Good Condition (Preventative Maintenance) Adequate for now. Acceptable, generally approaching mid stage of expected service life Condition range o Small Repairs C Fair Condition (Rehabilitation) Requires attention. Signs of deterioration, some elements exhibit deficiencies Condition range o Structural Lining D Poor Condition (Reconstruction) At risk of affecting service. Approaching end of service life, condition below standard, large portion of system exhibits significant deterioration Condition range o Replacement F Critical Condition (Reconstruction) Unfit for sustained service. Beyond expected service life; widespread signs of advanced deterioration, some assets may be unusable Condition range 19-0 o Replacement Wastewater Systems A - Excellent Condition (Maintenance) Fit for the future. Well maintained, good condition, new or recently rehabilitated Condition range o Regular maintenance required 22